Michelin North America President on Investing in U.S. Factories

Growing demand for sport-utility and performance vehicles has spurred Michelin to increase production at its U.S. plants. Pete Selleck, chairman and president of Michelin North America, pointed to the number of miles driven in America as a positive trend for the automotive and tire market. Vehicle miles plateaued following the recession. But according to the Federal Highway Administration, U.S. motorists traveled 1.26 trillion miles from January through May, an all-time high for the first five months of the year. Meanwhile, the average vehicle in the U.S. is 11.5 years old, a record high. Both developments support demand for replacement tires, and rising sales of trucks and trailers are lifting Michelin’s business as well. Selleck said the truck and trailer market is up 17% for Michelin this year. Sales are moving at such a quick pace that Michelin needs to supplement its U.S. supply with imported tires. Therefore, Michelin is investing in American factories to keep up with demand. “We are, in fact, increasing capacity at many of our existing plants,” Selleck, who took charge of the French tire maker’s North American operations in 2011, told FOXBusiness.com.